CaCPA Compliance Requires Effective Investigation and eDiscovery Capabilities

By John Patzakis

The California Consumer Protection Act, (CaCPA ), which will be in full force on January 1, 2020,  promises to profoundly impact major US and global organizations, requiring the overhaul of their data audit, investigation and information governance processes. The CaCPA requires that an organization have absolute knowledge of where all personal data of California residents is stored across the enterprise, and be able to remove it when required. Many organization with a global reach will be under obligations to comply with both the GDPR and CaCPA, providing ample requirement justification to bolster their compliance efforts.

CCPA Image

According to data security and privacy attorney Patrick Burke, who was recently a senior New York State Financial Regular overseeing cybersecurity compliance before heading up the data privacy law practice at Phillips Nizer, CaCPA compliance effectively requires a robust digital investigation capability. Burke, speaking in a webinar earlier this month, noted that under the “CaCPA, California residents can request that all data an enterprise holds on them be identified and also be removed. Organizations will be required to establish a capability to respond to such requests. Actual demonstrated compliance will require the ability to search across all data sources in the enterprise for data, including distributed unstructured data located on desktops and file servers.” Burke further noted that organizations must be prepared to produce “electronic evidence to the California AG, which must determine whether there was a violation of CaCPA…as well as evidence of non-violation (for private rights of action) and of a ‘cure’ to the violation.”

The CaCPA contains similar provisions as the GDPR, which both specify processes and capabilities organizations must have in place to ensure the personal data of EU and California residents is secure, accessible, and can be identified upon request. These common requirements, enumerated below, can only be complied with through an effective enterprise eDiscovery search capability:

  • Data minimization: Under both the CaCPA and the GDPR, enterprises should only collect and retain as little personal data on California residents EU subjects as possible. As an example, Patrick Burke, who routinely advises his legal clients on these regulations, notes that unauthorized “data stashes” maintained by employees on their distributed unstructured data sources is a key problem, requiring companies to search all endpoints to identify information including European phone numbers, European email address domains and other personal identifiable information.
  • Enforcement of right to be forgotten: An individual’s personal data must be identified and deleted on request.
  • Effective incident response: If there is a compromise of personal data, an organization must have the ability to perform enterprise-wide data searches to determine and report on the extent of such breaches and resulting data compromise within seventy-two (72) hours under the GDPR. There are less stringent, but similar CaCPA requirements.
  • Accountability: Log and provide audit trails for all personal data identification requests and remedial actions.
  • Enterprise-wide data audit: Identify the presence of personal data in all data locations and delete unneeded copies of personal data.

Overall, a core requirement of both CaCPA and GDPR compliance is the ability to demonstrate and prove that personal data is being protected, requiring information governance capabilities that allow companies to efficiently produce the documentation and other information necessary to respond to auditors’ requests. Many consultants and other advisors are helping companies establish privacy compliance programs, and are documenting policies and procedures that are being put in place.

However, while policies, procedures and documentation are important, such compliance programs are ultimately hollow without consistent, operational execution and enforcement. CIOs and legal and compliance executives often aspire to implement information governance programs like defensible deletion and data audits to detect risks and remediate non-compliance. However, without an actual and scalable technology platform to effectuate these goals, those aspirations remain just that. For instance, recent IDG research suggests that approximately 70% of information stored by companies is “dark data” that is in the form of unstructured, distributed data that can pose significant legal and operational risks.

To achieve GDPR and CaCPA compliance, organizations must ensure that explicit policies and procedures are in place for handling personal information, and just as important, the ability to prove that those policies and procedures are being followed and operationally enforced. What has always been needed is gaining immediate visibility into unstructured distributed data across the enterprise, through the ability to search and report across several thousand endpoints and other unstructured data sources, and return results within minutes instead of days or weeks. The need for such an operational capability provided by best practices technology is further heightened by the urgency of CaCPA and GDPR compliance.

A link to the recording of the recent webinar “Effective Incident Response Under GDPR and CaCPA”, is available here.

 

Leave a comment

Filed under CaCPA, compliance, Data Audit, eDiscovery, eDiscovery & Compliance, Enterprise eDiscovery, GDPR, Records Management, Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s